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CA Intermediate · Corporate and Other Laws · The Limited Liability Partnership Act, 2008

Aarav LLP has three partners: Aarav, Bhavna and Chirag. Chirag, who was appointed a designated partner, wishes to know the minimum number of designated partners an LLP must have and the residency condition attached to them. Which statement correctly reflects the LLP Act, 2008?

An LLP must have at least two designated partners who are individuals, and at least one of them must be resident in India. Residency of all designated partners is not required, and a body corporate cannot itself act as designated partner; it can only nominate individuals.

  1. AEvery LLP must have at least two designated partners who are individuals, and at least one of them must be resident in IndiaCorrect
  2. BEvery LLP must have at least one designated partner, who may be a body corporate, and none need be resident in India
  3. CEvery LLP must have at least three designated partners, and all must be resident in India
  4. DEvery LLP must have at least two designated partners, and all of them must be resident in India

Explanation

An LLP must have at least two designated partners who are individuals, and at least one of them must be resident in India. Option 4 is wrong because the residency requirement applies to only one designated partner, not all. Option 2 is wrong because a body corporate partner can only nominate individuals as designated partners.

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